On June 20, the Bithumb hack resulted in losses of over $10 billion in the cryptocurrency market. However today, the cryptocurrency market added $8 billion to its valuation after the slight recovery made by Bitcoin, shortly after Bithumb, South Korea’s largest cryptocurrency exchange was hacked.
Major cryptocurrencies including Bitcoin, Ethereum, Ripple, and Bitcoin Cash on June 20 dropped by about 2 percent as the market went through a slight drop, which was also driven further by the increased decline trend of tokens and other smaller cryptocurrencies.
The slight recovery made by Bitcoin was definitely as a result of the Bithumb hack, which instantly ended the corrective rally of the cryptocurrency market and the short-term rally of Bitcoin from $6,300 to $6,700. Investors in the global cryptocurrency market and the exchange market of South Korea started a sell-off of digital assets with concerns that the Bithumb hack might result in a short-term decline movement.
Yet, the Bithumb team were quick to give clarifications in an official statement, which read:
“We checked that some of cryptocurrencies valued at about $30,000,000 were stolen. Those stolen cryptocurrencies will be covered from Bithumb and all of the assets are being transferred to a cold wallet.”
With over $300 million made in net profit last year, $30 million is a relatively small amount for the company valued at more than a billion dollars. Yet, following the release of the official statement, Bithumb withdrew it from several social media platforms.
When questioned, a Bithumb representative noted that even though the stolen money in the hack is still correct and it is also decided that the company will regain all $30 million with its funds, regulators asked the company to use a more organized approach to the situation which resulted to the withdrawal of its statement to make a detailed announcement soon.
Some analysts were quite critical about the short-term movement of the cryptocurrency market, mainly as a result of the positive movement of Bitcoin and Ethereum. Bitcoin manages to avoid dropping beneath the $6,000 mark after it recovered from the $6,200 region.
However, as a result of the low volume of the cryptocurrency market, it is hard to determine that bears have been unsuccessful to stay in charge of the market. Yet, in the past 9 days, Bitcoin was able to maintain some momentum with consecutive daily buy candles.